Call animal control to come get the dog. They will file a report on the dog and the owners may be fined. Then, call the police and let them know about this also. If the dog had hurt one of your family members, this could have been every bad. I'm glad everybody is ok.
watch those puncture wounds. I had a poodle get bit once and I didn't see the puncture wound and it abcessed and he needed surgery and it cost $800 to fix it. You might want to get to the vet now and start your dog on antibiotics, preventatively. WAYYYyyyy cheaper!
Sorry for the lousy neigbors. If you do report them add on charges of contributing to the delinquency of a minor since they are trying to get your kids drunk and driving, which is breaking I don't know how many laws.
As happy as you are to see them move and take their dog with them, I would still contact the police so that it is on file. That way, if the dog attacks another pet or a person at the new residence, they already have a file started on it and you may save the next person from having to go through a longer process of dealing with it.
That next family they move next to might have a toddler instead of a dog...
Plus, if your dog ends up with an infection or something worse, you have the paper trail for any action that needs to be taken.
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No, shoot the dog and call the cops. A vicous dog needs putting down IMO regardless of the breed. Then, the cops need to be called to make a report so that you can be compensated for your damages. And the owners need a good chewing out, a citation,lawsuit, a night in jail, or something if this has been an on-going occurance.