The fact that your dog is intact, I have been told, can cause other male dogs, fixed and not, to be more aggressive towards him. I have the same problem with Max. He is intact and some male dogs seem to want to attack him. He stands his ground and looks down at them, with a WTF expression on his face. He won't run, or back up, but he doesn't respond aggressively either, unless the other dog is on our property. I know he would fight back if he were bitten, because he does with Jake, but so far so good. If Cody or Jake is with us, when other dogs growl at Max, they react strongly. They look at Max like they are not sure what his problem is and then try to get to the other dog. I think it is kind of like a big brother taking up for a handicapped sibling who is being picked on. I call Max my ADHD kid. He is so good natured that he is just a big goofball. Another thing you might want to consider is your neighbor's dog may be trying to be aggressive in order to be defensive. If he is smaller than your dog, he may be afraid of him and thinks that by growling and acting aggressive, your dog will leave him alone. Lots of dogs will do this with bigger dogs, as a defense mechanism. I would definitely talk to the neighbor again. They need to find a solution for keeping their dog under their control. If they don't feel that they can keep him out of your yard, could you and your neighbor get the dogs together and let them get to know each other. Maybe if you let them do a meet and greet, both on a leash, repeatedly, they will acclimate to each other and it won't be a potential problem down the road. If they happen to get together, maybe they would actually play. I wanted to do that with my neighbor's dog, but Jake would probably eat the pom. He is not tolerant of small dogs at all.
Kathy