Twilight in the Smallish City

It was twilight. Just a few more moments before the sun would set on another glorious day and the wraiths and ghostly forms and teenage hoodlums would come out. I live in the middle of our smallish city, and being an all-girl household, we don't go out afoot after dark.
I sent my 11 yo (#1) and 3 yo (#2) girls outside with our 4 mo puppy for a last hurrah of the day... 5 minutes only. In that small amount of time, my next door neighbor, the immodestly-dressed 50-something yo party animal of a public school teacher (ID50+PAPST), invited my children to attend the local Gay Pride Parade (GROSS). She even told them that if I didn't want to go, she would take them (including 3 yo #2) to the GROSS.
#1 was flabbergasted and disgusted (I guess I'm doing something right). #1 said she told ID50+PAPST that she didn't think her mother would allow them to go to the GROSS and besides none of us were gay. Don't you just love how children are many times more logical than adults.
#1 also told ID50+PAPST that last year we were driving to the mall and accidentally saw a part of the GROSS and it was... well, gross.
ID50+PAPST told #1 that a person didn't have to be Gay to go to the GROSS. That most of "her kids" (she doesn't have any of her own -- these are her school kids) love going to the GROSS because it's fun. #1 still politely declined.
After #1 told me this story, she also told me that ID50+PAPST confided that most of "her kids" end up in prison because most of them end up in gangs selling drugs and killing people. #1, being more logical than ID50+PAPST, put 2 and 2 together and came up with the solution that going to the GROSS, selling drugs, killing people and being in gangs is all part of the insane world in which ID50+PAPST lives and works. I politely agreed and chose NOT to tell #1 that while ID50+PAPST is more off her rocker than the public school system IN GENERAL... she's not much more.
ID50+PAPST is very nice and she's actually a good neighbor. She looks out for the girls and me and our dogs. She is, however, overly concerned with my oldest daughter's socialization (scary). But apparently her idea of socialization is... well, you've been reading, haven't you? I try to limit my children's exposure to ID50+PAPST while maintaining compassion for her as a human so deeply entrenched in a sinful lifestyle that she can't see it. Did I mention that ID50+PAPST is a Catholic? Although lapsed (or never there, really), she doesn't think so. I mean, she has a statue of the BVM in her front yard AND wears a crucifix.