Exactly, it sounds like your town is big enough to have/deserve decent transit, but small enough that a small vocal group could have a big impact.

Get involved, show up, campaign for/against politicians that support/oppose improvements. If you can find a friendly counselor (don't discount anyone, you never know who might already quietly support a special interest like this) to meet with you, get their help to make a list of practical improvements that could be enacted now/quickly, focus your activity around these (for now). Work to mobilize other bus takers/cyclists/young people/older pensioners who are more reliant on transport. Contact local press, write letters to the editor, befriend a local reporter. Consider planning a small demonstration, but keep the tone very friendly, you are trying to convice and even befriend people who maybe didn't care or know about the issue. Frame the debate in an inclusive way (i.e. rush hour traffic is terrible, wouldn't bike lanes and bus lanes improve things for everyone, even car users?)

You don't have to do all of the above, just what you can to move the needle. Local politics can actually be a lot more rewarding than national, because you have a chance of seeing a real impact.