Do you have a leash law? If so, I would not hesitate to report them. My father had a dashound killed by german shepherds who, according to their owner, would not hurt a fly.
This woman might think about getting a better fence and controling her dogs if she has to pay a hefty fine for them getting out. I paid the fine a few years ago when our lab and spitz got out and ended up at the pound, and it wasn't cheap
, but hey, it was my own fault, and we fixed the fence so it wouldn't happen again.
If you don't have a leash law, you may wish to lobby for one. It could save an innocent dog, or even a person's life.