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body of the County government. This component unit is included in the County's <br />reporting entity because of its financial relationship with the County. <br />The County provides a full range of municipal services. These include police and fire <br />protection; emergency medical care; public prosecutor; culture and recreation; sanitation; <br />social services; water; planning and zoning; construction and maintenance of highways, <br />streets and infrastructure; real property assessment and tax collection; and general <br />administrative services. However, the County does not provide such other traditional <br />services as public education, hospitals and courts. These services are provided by the <br />State government. <br />The County consists of the island of Hawai`i, 4,028 square miles in size. It is twice as <br />large as the combined area of all the other inhabited islands in the Hawaiian Archipelago. <br />Since there is no other local or municipal government within the County, there are no <br />overlapping taxes and no overlapping debt. The County has an elected mayor and a nine- <br />member council. <br />Economic Condition and Outlook <br />The island of Hawai`i, commonly known as the Big Island, is located 214 miles from <br />Honolulu, the state capital; 2,200 miles from the west coast of the continental United <br />States; and 4,000 miles from Japan. The city of Hilo on the east side of the island serves <br />as the county seat as well as the transportation and financial center for the Big Island. <br />Hilo's infrastructure includes Hilo Harbor, a deep -water port, and Hilo International <br />Airport, which is capable of handling fully- loaded wide - bodied aircraft. Kailua -Kona <br />and South Kohala, major tourist destination areas on the west side of the Big Island, are <br />served by flights from the United States mainland, and Canada through the Kona <br />International Airport. Scheduled freight services are available between the islands by air <br />and sea transport. Communities on the island are linked by a network of State and <br />County maintained streets and highways. <br />The Big Island is the most diversified of the neighbor island economies. As a result it is <br />buffered to some extent when any one industry lags. Although 2009 proved to be a <br />challenge for most of the major sectors of the island's economy, the end of fiscal year <br />2010 and beginning of fiscal year 2011 showed the early signs of an impending economic <br />recovery and the remainder of fiscal year 2011 continued to show signs of the same <br />restrained recovery. <br />The County's labor force numbered 83,367 at June 2011, which is a slight increase from <br />a year ago. A sign that the economy is on the road to improving instead of the dramatic <br />downturn that confronted the County several years ago is the fact that the County's <br />unemployment rate for the current fiscal year 2011 (9.5 %) was slightly lower than the <br />prior fiscal year 2010 (10.0 %), which serves as a positive indicator for the second year in <br />a row. Despite the higher level of unemployment facing the State in recent years, the <br />State continued to remain below the national rate as it did prior to the onset of the <br />recession. <br />1Wg <br />2 <br />