If you know which kids participated, I would talk to the parents and very calmly explain exactly what happened. Describe the damage in detail and the fact that your basement was wrecked.
"Before your children come back to play, we need to resolve this. There was damage beyond the point of carelessness-- if they had just been filling up the water balloons, that was one thing, and they could have used the hose for that. Instead, the mess was just plain damage and mischief (broken basket, etc.). Before your children can come play again, we need to have a serious conversation. And I need to be clear, if anything of this nature happens again, we won't be able to have your kids at our yard. I really don't want to exclude ANY group of children from playing in the yard, but this goes beyond just having fun." I'd also accept and acknowledge that your kids might have been part of it, and that they have had their punishment of having to stay up cleaning up the mess and will be helping with the laundry.
If the parents are jerks, this doesn't stop you from talking to the kids.I don't know how you feel about it, but I'm the sort of parent who would actually take a kid aside in my yard and just tell them "You know, you and I have a problem we need to work out, about you making a mess in my basement and breaking a lot of rules we all agreed on. Until you and I get things straight, you can't play here because you've broken my trust." I'd want a full, sincere apology from the kids. I'm not willing to let things just 'go on' as normal when the KIDS know that things shouldn't go on as normal. It is perfectly within limits to make clear boundaries with another person's kid on your own property, esp. when the parents have all made an agreement and expected their kids to follow it. The kids need to make amends; personally, if I were a parent of one of the older kids, their summertime would have just started getting *really* boring, because they would be grounded to the inside of the house unless I could be outside with them. Act like a child who needs a babysitter, and I'll babysit you. I'd also be having them fork over their allowance to cover the part of the water bill and the damaged items. But then again, I'm the kind of parent who doesn't want my kid to think it's okay to act like a turd.
(We recently had a playmate over who, when she was here with a babysitter and my son -- the adults were out-- she broke some rules and ended up breaking something in a room she wasn't supposed to be in. I was very direct with her that I had noticed it and that she must stay in where she is supposed to or that she couldn't come visit any more.)
I guess the hard lesson in this is that now you know you are going to have to be present in the living room/entry area if you choose to have kids over. If it were me, I'd store all the outside toys in a garage or in a container that the kids don't have immediate access to outside. And then, every stinking time kids came to play, I'd make my presence very known. Any back doors/side doors would be locked. No nonsense. If your kids aren't outside, then they can't be in your yard, playing.
And do have them pick up the toys when they come. "Oh, Bobby, that bat/car/ball needs to go back in the bin before you leave." Follow through. If you are present, expecting the kids to tidy up, etc, it sets a tone that YOU have expectations at your house.
Do expect, too, that those older kids may not come around for a while. That's okay. Let your kids know that it isn't because of *them*, but that the older kids knew they did something wrong and they're embarrassed as they should be.
ETA: I have to disagree with the idea that 'the parents don't need to know'... I would most definitely want to know if my son did something like that.