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body of the County government. This component unit is included in the County's reporting entity because of its financial relationship with the County. The County provides a full range of municipal services. These include police and fire protection; emergency medical care; public prosecutor; culture and recreation; sanitation; social services; water;planning and zoning; construction and maintenance of highways, 00 streets and infrastructure; real property assessment and tax collection; and general administrative services. However, the County does not provide such other traditional services as public education, hospitals and courts. These services are provided by the State government. The County consists of the island of Hawai`i, 4,028 square miles in size. It is twice as large as the combined area of all the other inhabited islands in the Hawaiian Archipelago. • Since there is no other local or municipal government within the County, there are no overlapping taxes and no overlapping debt. The County has an elected mayor and a nine- 00 member council. Economic Condition and Outlook MI6 The island of Hawai`i, commonly known as the Big Island, is located 214 miles from Honolulu, the state capital; 2,200 miles from the west coast of the continental United States; and 4,000 miles from Japan. The city of Hilo on the east side of the island serves as the county seat as well as the transportation and financial center for the Big Island. Hilo's infrastructure includes Hilo Harbor, a deep-water port, and Hilo International Airport, which is capable of handling fully-loaded wide-bodied aircraft. Kailua-Kona South Kohala, major tourist destination areas on the west side of the Big Island, are served by flights from the United States mainland, and Canada through the Kona or International Airport. Scheduled freight services are available between the islands by air and sea transport. Communities on the island are linked by a network of State and County maintained streets and highways. The Big Island is the most diversified of the neighbor island economies. As a result it is buffered to some extent when any one industry lags. Although the past few years proved 00. challenging to the island's economy, it appears that the County will continue on its steady but slow road to improved financial health. This favorable outlook is supported by positive trends in the following key areas of the island's economy. 0 The County's labor force numbered 83,617 at June 2012, which is a slight increase from a year ago. A sign that the economy is continuing on the road to a brighter position than that which faced the County several years ago is the fact that the County's unemployment mow. rate for the current fiscal year 2012 (9.2%) was slightly lower than the prior fiscal year 2011 (9.5%), which serves as a positive indicator for the third year in a row. Or Tourism—Tourism has always been the major industry on the island. In addition to the mild climate and natural beauty it shares with other areas in the state,the County features , the Hawai`i Volcanoes National Park. A popular attraction, the park is the most visited site in the state, handling over 2 million visitors annually, which became even more popular with the increased activity of Kilauea Volcano. Another indication of the - 2 - 4