A Wisconsin judge has declined to block a planned referendum in Port Washington that would give residents expanded authority over the creation and modification of tax incremental districts, clearing the way for voters to decide the measure at the ballot box.

The legal challenge sought to prevent the referendum from moving forward, arguing that the proposed ordinance conflicted with state statutes governing tax incremental financing districts, commonly known as TIDs.

Petitioners contended that the measure could disrupt established economic development procedures and introduce uncertainty into municipal planning.

In rejecting the request for an injunction, the court determined that there was insufficient legal basis to prevent the referendum from proceeding before voters have an opportunity to weigh in.

The ruling emphasized that disputes over the substance or legality of the ordinance could be addressed through appropriate legal channels if the measure is approved.

Supporters of the referendum say it would strengthen democratic oversight by requiring direct voter approval before the city establishes new TIDs or amends existing ones.

They argue that tax incremental financing, while widely used to support development projects, can affect property tax distribution and long-term municipal finances, warranting broader public input.

City officials have cautioned that adding a referendum requirement could complicate economic development efforts and limit the municipality’s flexibility in responding to investment opportunities.

They note that TIDs are governed by state law and are subject to multiple layers of review, including approval by local plan commissions and oversight boards.

With the court declining to intervene, the referendum is expected to appear on the upcoming ballot.

The outcome will determine whether Port Washington residents gain direct voting authority over future decisions involving tax incremental districts, a move that could influence how other municipalities approach local development governance.