To bad about the neighbor Harry,,,, probably the best approach is exactly the one you're taking,,,,,, avoid him as much as you can and only shoot when he won't present a problem. Most cops don't have a problem with people shooting air rifles and will, after receiving a complaint, usually just ask you to keep a low profile to keep the neighbors from calling again,,,, that's the approach the guys I work with take. However, on those occasions where we keep getting repeat calls then the cops usually get tired of dealing with it and decide to take enforcement action which can lead to a person having their rifle confiscated. Even if there isn't an air rifle ordinance the New York State Penal Law has a few sections in it that can be used,,,, the big one being "Reckless Endangerment". Anyway,,,, I think you're doing the smart thing and avoiding the guy......
Jeff