Yes dogs barking can be disturbing the peace. There's not much a police officer can do but tell them that the dog is being a nuisance.
Although in some places there are noise ordinances after a certain time and in some places the neighbor or pet owner can get ticketed for the dog disturbing the peace.
Are the neighbors nice people? If so maybe go over there first and tell them that the dog is bothering you.
They might not even know the dog is really bothering you.
But then again if you do that and they don't cooperate and then you take it to the town or the police then they might turn against you.
Only go up to them if you deem them to be nice people. If you're in doubt you might just make a call to the police and see what they can do.
Don't call 911 though just call the police departments local phone number. They might or might not come out depending on what their policy is and again there's not much they can do.
I remember seeing a cd you put into your stereo and you point the speakers towards the dogs and you can't hear the pitch but the dogs can and it's supposedly keeps them quiet.