The Zombie Stack Exchanges That Just Won't Die
Are there any agreed policies or standards in the area of deciding what items are worth preserving? Items that seem mundane, like old catalogs, may prove useful for economists to track how prices, and the economy, have changed over time.
InquilineKea
It's hard to predict the future, and what people in the future would find useful. I think orienting preservation activities around what your library users find useful now can be helpful to retain your sanity. To do this, you inevitably need to measure and analyze what collections and content are getting used. The study of archival appraisal offers a lot of theory in this area if you are willing to take a deep dive into an answer to your question.
Materials which are not likely to be available from other sources, such as local history, should definitely be preserved.
Top of the list: items that are in danger (crumbling paper, ect.), items deemed of historical provenance, and items valued by donating patrons (thus leading to more donations).