Suppose, instead, the well-prepared Wizard opens with Web. Target is Entangled with no save, takes -2 to attack, -4 to dex, half move, can't run or charge. That Hydra is now making 20 feet per round with no attacks, 10 feet per round with attacks.
And suppose that, after the Web, everyone just shoots arrows; Ranger at 1d8+4 with his +11 standard action attack, Bard with 1d8+0 / +7; Wizard 1d8-1 / +4; Druid at 1d8 / +6.
Ranger hits 95% of the time, and averages 8.075 points of damage.
Bard hits 75% of the time, and averages 3.375 points of damage.
Druid hits 70% of the time, and averages 3.15 points of damage.
Wizard hits 60% of the time, and averages 2.1 points of damage.
That's an average of 16.7 damage per round, after the first, using only a standard action, leaving the move action free for everybody. With fast healing 15, that's an average of 1.7 damage per round.
Everyone in the party can get 30 feet in a round and still attack; the Hydra can get only 10 feet in a round and still attack, or 20 feet in a round and not attack. It can't keep up. The party can stay at range, pelting the stupid (Int 2!) hydra for as long as they have arrows and a retreat path. It goes down in 32 rounds, and is dead after that, provided everyone happens to have lots & lots of arrows.
Granted, Web is probably overpowered for it's level, and there's better strategies to follow that will kill the hydra faster. However, if the party goes first, they take no damage, use up one 2nd level spell, and lots of arrows. Sounds a lot like a CR 4 encounter.