What Dan said (first response to your question) is about right, in terms of
municipal nonsense and whining neighbors. As far as the smell, your
neighbors have no idea what they're talking about, ***ASSUMING*** you
compost correctly. Food scraps only smell if they undergo anaerobic
decomposition, which occurs in a sealed environment. Well, not totally
sealed, but close to it. Example: I used to throw food scraps into a bucket
outside the back door, and let them collect for a few days before mixing
them into the composting box. The stuff at the bottom of the bucket would
begin to smell really foul and it looked like vomit. That put an end to the
bucket idea. But, even when it was dumped into the composting box, the smell
was gone within a day. I still wouldn't recommend this, though.

If you put the wrong things into the compost, you'll get odd smells, and
lots of unwanted animal visitors. Never put meat bones into the compost, and
even eggshells should be avoided, unless you want to share everything on
your property with raccoons. No dairy, either. So, if your cutting board
contains vegetable scraps littered with remnants of cheese you shredded,
don't compost any of it.

If your neighbors whine, ask them to explain their theories to you:

Neighbor: Compost piles stink....
You: Really? You had a compost pile at some point?
Neighbor: No...but I heard that they were smelly.
You: No kidding? Where'd you hear that? I'm always interested in swapping
gardening ideas with other knowledgable people.
Neighbor: Well...you know what I mean...they smell.
You: No...I don't know. Could you explain?

That was pretty much an actual conversation with MY neighbor, who I managed
to tune up nicely after about 3 years. After that time, she began asking for
compost to add to her outdoor patio plants. :-)

Never let the ignorant get away with being that way, if it affects you.
Never never never. Be like a dog with a bone.