My library has trouble attracting patrons too. There is a lot of us regulars, but they have a hard time getting new patrons. The city council members tend to think the library ought to operate more like a business. They also balk about the computers! "Why have public computers since most homes already have one." I've even heard the arguement that the public library should merge with the public school libraries. This one tends to come from people who never use a library and have no idea what they're talking about.
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There has been an interesting movement as of late that seeks to do the things you mentioned above. The ALA has an impressive
listing of initiatives and other votes taken during the 2004 elections in regards to funding, library expansion, as well as retaining current services offered to patrons. To me, cutting library funding ranks up there with cutting EMT care and the fire department.
Fortunately, people realize what a service libraries truly are.