Comprehensive Annual Financial Report 2020

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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, 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 Hawaii, 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 -member council. Economic Condition and Outlook The island of Hawaii, 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 and South Kohala, major tourist destination areas on the west side of the Big Island, are served by flights from the United States mainland, Canada and now Japan through the Kona International Airport. Scheduled &•eight 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 unemployment rate for the County for the current fiscal year is at approximately 13.2 percent, it preliminarily decreased to 9.8 percent as of November 2020, which is according to the State of Hawaii Department of Labor and Industrial Relations Office of Labor and Statistics. In addition to the mild climate and natural beauty it shares with other areas in the state, the County features the Hawaii Volcanoes National Park, in addition to four other national parks that focus on Hawaiian culture and history. Tourism has always been one of the major industries on the island. In fiscal year 2019, the County suffered from two natural disasters, Hurricane Lane and a volcanic eruption in the community of Puna, which took a toll on the island's visitor industry. Even with the halting of volcanic activity during the fiscal year, efforts continue within the County and impacted community to deal with the devastation and devise plans for recovery. Despite sensational headlines that described the island as being covered with molten lava, the island has remained open for business. Then as the County was beginning to recover, COVID-19 began to spread throughout the world and on January 30, 2020 the World Health Organization declared a Public Health Emergency of International Concern. The County, as well as the rest of our nation, was challenged to balance decreasing revenues from all major sources with increasing expenditures incurred in response to dealing with the public health crisis facing the community. In order to aid the state and local IWM