Skunks have eyes like cats - they reflect and refract light with magnification so they glow. And the "Silver-Backs" always smell. I used to live in a forest and got to know them well. The biggest skunks are the Gold-Backs - and they are non-stinkers. Unless you scare them. If you speak to them softly and calmly, they will relax. I've walked - slowly - up to many skunk - and sat down. Never once was I sprayed. They looked at me. I looked at them. And they relaxed and I spoke softly.
The Native folks - who have been around them a long time, just say: "Hey Stinky! How's it going?" and don't get sprayed. At least where abouts' I've lived.
I pity your neighbor's dog - if he thinks like some people. If the dog tangles - you could make some serious money selling cheap incense to the neighbor the next day.