Frankly, I think Rufus & Co would be rather pissed at this rogue group of adventurers. Being experienced adventurers themselves, they have firsthand knowledge of copmbat, death, and suffering - and they can appreciate how tough adventurers can be vs. town guards an civilians. A barbarian kicking in a shop and killing the lady is the modern day equivalent of stealing a tank and driving about machinegunning people. Also, Rufus & Hommlet & Co are used to confronting trouble with sword & spell so they will not shy from kicking the ass of the party - barbarian especially, but all of the troublemakers. Avoiding modern-day meta-thinking (Imprison them for life), their response would be to kill or exile the party after taking all their stuff to as compensation. Remember - imprisonment requires a jail and guards able to reatrain an adventuring party and associated resources Hommlet dosen't have, especially in light of the nearby threats. Nobody knows how hard it would be to restrain an adventuring party than old adventureres (Rufus & Co).
LG characeters go about slaying evil all the time in DnD without any trouble. What's the difference between a murdering Orc and a murdering Barbarian? Not very much, unless justice is based on race and not action... a very possible situation (happens in the real world to our regret, happened even more in history). Avoid modern day shades of grey meta-thinking in your interpretation of good & evil. Also remember the Old West and how local sherrifs would gun you down just for preseting a possible threat - they kept order in a tough world, could be considered LG protectors of frontier towns, and had no problems killing people.
If you need a good out without killing the party ansd possibly canning the campign by exterminating everybody, have Rufus find a powerful geas item in his basement or something (Rule 0) - then magically commit the whole party to destroying the TOEE and returning all treasure to the town, with no options to delay the quest or quit. It's an elegent answer - removes the troublemakers from the town. Doesn't directly kill them, but pits them in mortal combat against evil - and how often in history has "trial by combat" been an acceptable form of determining justice? If they win, Rufus & town get the loot to repay them for the murders and trouble, and the party has paid its debt. If they loose, they are dead and no more trouble, and in the process weaken the evil threat near Hommlet. Plus it is fun revenge for the GM, since you get the whole party to bust their asses defeating evil and not keeping the loot, and great opportunity for some kickass roleplaying.
- Billboard Baggins