Councillor Larry Baldock predicted that mixing up the referendum with the election would result in the museum issue dominating the byelection.
Tauranga residents will also have the option of voting online - adding up to $10,000 to the $45,000 cost of running the referendum.
Yesterday's vote was a victory for deputy mayor Kelvin Clout who said the referendum would be a tool to help the council make up its mind.
He believed it would generate a lot of information and debate and allow a much greater number of people to have their say.
The majority of councillors were not persuaded by Taonga Tauranga convenor Peter McKinlay warning that a referendum would result in a decision to abandon the project.
He said referendums were useful for simple issues. But for something like a museum, it was too easy for ratepayers to see the costs as a burden and extremely difficult to see the benefits before it was built.
McKinlay, who leads the group promoting debate on the importance of having a museum, highlighted how Dunedin's Forsyth Barr Stadium would never have gone ahead if the council had heeded public opinion. Now Dunedin would not be without it.
''Please get on and make a decision in the interests of the city.''
When it became clear that the majority of councillors backed the referendum, Baldock attempted to replace it with a scientific survey, but the bid was also lost 7-3.
He warned that if the usual 30 per cent turnout for byelections was repeated, the fate of the museum could be decided by 16 per cent of Tauranga voters.
Baldock said a non-binding decision was an oxymoron because voters would expect the council to abide by the result of the referendum.
"People will make their decision on money."
Mayor Greg Brownless backed the referendum, saying he did not share the same pessimism about the result. "A lot of people living in this city are looking to the future."
Councillor Max Mason called a non-binding referendum "a very poor survey". A scientific survey would provide feedback from the city's different demographics and give councillors a really good understanding.
The other opposing councillor, Terry Molloy, said the council was "kicking the can down the road".
"It is an incredibly complex issue. It is very difficult for people to wrestle with all the complexities."
Councillor Steve Morris said he asked a recent community meeting at Papamoa whether they favoured a referendum and 70 hands shot up in support.
Councillor Leanne Brown said a referendum was spreading the net a lot further than the same people who turned up to submit on long-term and annual plans.
A survey of 400 Tauranga residents last year by Key Research showed 64 per cent supported a museum, 41 per cent were willing to pay and 62 per cent would visit a museum. Willow St was the preferred location.
Timeline for referendum
- Voting opens April 9
- Voting closes May 1
- Final result announced May 3
