What? WHAT?? NO! This is not acceptable
You need to call your representative and tell him what the sheriff told you, what the neighbors are doing, that can not stand. You do NOT have to tolerate that kind of torment and threat. You need to put in daily police reports - whatever it takes to get a paper trail. Hell, call the local media. No way do you have to live like that in America - especially TEXAS! I want to come over there and kick some butt FOR you. OMG! I am so mad! I do hope you are well armed at least. Those are not people with a respect for life. And cutting your fence and sending their dogs into your yard has NOTHING to do with leash laws.