Those Darn Squirrels and the Cat Next Door by Adam Rubin, illustrated by Daniel Salmieri

From chapters.ca:
All is calm in old man Fookwire's yard until new neighbours - Little Old Lady Hu and her cat, Muffins - move in next door. Muffins is one mean dude! He terrorizes the birds, interrupts Fookwire's painting, and ties the squirrels' tails together. Fookwire is upset, but not nearly as upset as the squirrels, who devise an ingenious plan to stop Muffins cold. In this hilarious follow- up to Those Darn Squirrels!, the tongue- in- cheek text is perfectly complemented by the quirky, inventive illustrations.