Citizens voting on naturalization was abolished by federal court decision since 2008.

You can still be voted on by the city council though, but they are required to provide a reason and „wrong hair color“ will not pass legal challenge.

We are both correct in a way. Local authorities can still decide applications. It's no longer a secret ballot but naturalisation commissions, local councils, municipal parliaments, or assemblies.

Some decisions still make headlines though because the reasons are rather weird sometimes.