Final answer:
Tax increases are a common municipal issue requiring voter approval through a referendum, where citizens confirm or repeal a decision made by the government, as in the case of Wisconsin where voters restricted the governor's veto powers in 2008.
Step-by-step explanation:
Among the types of municipal issues that may require voter approval through a referendum, tax increases stand out as a common example. According to what we've learned, referendums can serve as a check on governmental power, allowing citizens to voice their demands directly in the political process. For instance, as mentioned in the case of Wisconsin, the voters approved a legislative referendum brought forward after the Governor's use of veto powers in a way seen as controversial.
Referendums are not examples of pure direct democracy because they do not allow citizens to propose policies outright, but rather to confirm or repeal decisions made by the government. This can be seen in the context of municipal tax increases, which often involve the public in decision-making due to their direct impact on the citizens' finances.
The use of referendums is a crucial way for the public to have a direct say in specific legislative matters, and while they can cover various issues such as zoning regulations and traffic measures, they are most notably used for confirming or repealing tax-related proposals.