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both funding techniques were new to North Carolina, legislative sanction was sought. In 1985 Carrboro was one of several North Carofina local governments that were among the first to obtain local legislation from the General Assembly authorizing them to adopt impact fees.3 Carrboro was allowed to establish separate fees for streets, drainage facilities, and several other types of public facilities. Local acts authorizing similar fees to be imposed by the towns of Chapel Hill and Hillsborough for streets, drainage facilities, and recreational facilities were adopted in 1986.4 Orange County's authorizing legislation came a year later. That legislation allowed the county to use impact fees for the full range of capital improvements that were authorized for any city in Orange Countys and to adopt such fee.s for schools and water and sewer facilities as well. The county's new authority was intended to be coordinated with the power of the various Orange County municipalities to impose their own impact fees and other forms of exactions (for example, land dedication and improvement requirements). The legislation limited the application of county impact fees to the county's planning jurisdiction, thereby excluding from county authority all areas within the corporate limits of the municipalities and the areas within their respective planning jurisdiction areas outside their territorial limits. Soon after this legislation was adopted, however, the county and its municipalities began to consider still other options for raising funds to finance public infrastructure. In 1988 the Intergovernmental Working Group on Revenue Sources, made up of local government elected officials in Orange 3, 1985 N.C. Sess. Laws ch. 357, § 2. 4. 1985 N.C. Sess. Laws ch. 936, §§ 1,'5. s. 1987 N.C. Sess. La~vs ch. 460, §§ 17-18.1. 25