We love our Neighbors

We love our neighbors, that being said, we have a major problem we have been dealing with since they moved in.  We lived in our house for 10 years with out any kind of water problems.  When our neighbors decided to build next to us the city made them raise their property.  Since then we have had our basement flooded 4 times.
The first flood happened 3 weeks after we finished the remodel of our basement.  Since neither of us had any landscaping in the basement filled with mud.  We replaced the carpet but decided not to replace the baseboards.  Its really hard asking the neighbor for money.  The first flood was financially split between their contractor and them.  
I have been digging trenches and changing landscaping in my yard.  I attached drain pipes to every down spout and made it so all of our water was self contained and would run off different places then we were catching our neighbors water.
I finally, after 3 years, have their landscaping and sprinklers contained to a point where it no longer is a threat to my basement.  Rain storms are another story.  The contractor did not get a permit and did not pour our neighbors driveway approach correctly.  Because of the bad work that was done all the gutter water that comes down the hill hits their drive way and goes across their yard and into mine.  Our yard takes ALL the gutter run off and ALL of their house run off.
We had a huge rain storm last week and I was not home.  When I arrived home there were no longer window wells visible in front of my house because they were completely full of water.  The pictures below show the mulch from my neighbors yard on my lawn.






This was the last straw.  We haven't asked for any help with repairs on the last 3 floods.  I have paid and done all the labor to try and manage the water problem.  There is nothing else we can do other than pay to replace their entire drive way.
Adam went to the city engineer.  He knew exactly what house we were talking about and opened their file.  Apparently the bond that was collected before the build began was never returned because they never had the inspections cleared on their house.  The city engineer said, "It looks like we gave them a warning about the driveway 2 years ago but nobody has ever followed up on it."
Im assuming all the foul play in this situation falls on the builder.  So Im not attacking our neighbors but we have to replace windows in our basement that have now been ruined.  Adam called our neighbor and firmly but lovingly explained that we can not take on the water any more.  If they are going to sew the contractor we need to put in a list of repairs that really need to be done to our basement.
The city engineer said he would take the paper work and info to the city attorney the same day Adam talked to him.  A week and half passed and Adam decided to call the engineer to follow up on the progress.  The engineer said, "well it looks like an inspector has got a report to go look at the property but nothing has been done yet."  Adam stressed the importance of needing this done before winter.  Every storm, every time the weather warms up we have to be on top of things trying to prevent flooding in our house.
This is such an awkward situation because our neighbors do not truly understand the emergency situation we are in.  Adam says there is a possibility that the city will make them red their entire front yard and round 2 entry drive way.