Report the dog problem to the Environmental Health Department through your local council, your neighbour is causing you a lot of stress with the barking dogs and should be made to controll them.
Have a word with your GP as the stress could be a factor of your sleep problems and dehydration, get him/her to check your sinnuses as they can be infected, indication of blokage which causes you to breath through your mouth and dry up your throat.
A nasal spray would help before bedtime but don't get addicted to it.
if your nasal passages are blocked you may be partially waking up during the night and not getting the right amount of sleep, this would cause more stress and lead to a worsening situation.
I Hope this helps, I had the same problem, saw the doc and got a course of antibiotics which cleared the sinnus infection, which I didn't know I had. I now get a better nights sleep.
Zzzzzzzzz
Pete