As a dog owner and a good neighbor I would say it's fine to tell them about the problem.
Calling the police/health department is not cool IMHO and since you have a rapport with them there is really no reason to...just talk to them. If the shoe were on the other foot and they had a problem/concern wouldn't you rather hear a reasonable request from them and not some random health department employee. It's not like the aren't going to figure out who called KMIW?