Am i wrong to be upset at neighbor?

Our neighbors of nine years called the police on us because my sons (8 and 9 yrs old) threw water balloons at their car. The neighbors son who is 10 and his brother who is 12 are over here all the time every day all day.They swear and use the middle finger, the father screeches up the street doing burnouts in his car spray paints cars in his yard for people and the fumes come over to us all the time, etc, but they are our immediate neighbors feet away so i try to set limits and maintain the peace; i buy pizzas for them provide entertainment etc etc. they are pretty much neglected by their own mother and the dad is always screaming at them. and when they are here i constantly have to referee and set limits due to their angry play (they wrestle but actually try to hurt my kids !) so- the other day (friday) one of them kicked my son in the privates really hard and i asked him to come here so i could talk to him he kept walking , i said if you dont want to talk about it and say sorry then stay at your house as he was storming off. so he left. the next morning is when my kids and their sleepover friend threw water balloons at the car. (it was out of anger) so the mom came over and spoke to me about it (i was unaware) i had a talk with them about it and i thought the issue was resolved , then- the police showed up 10 minutes later! am i wrong or is this a bad neighbor!