Teresa and I have discussed doing all those things you've suggested.
I suspect that if we contacted the newspaper it would then contact the city officials for their side of the story. So far they've been very dishonest and I imagine they'd concoct their own version of what's been going on. They outnumber us and it could turn into a he said/she said situation. They've already shown us that they're adept at twisting the truth. The local townspeople are most familiar with the mayor/city council and would most likely be able to see through any of the BS the officials would try to spin. People from outside that community might not know who to believe.
Teresa has been wanting to hire an attorney for some time but I've been dragging my heels because I know we can't afford it. I've been wanting to wait to see if public opinion would be enough to get them to back off.