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the County government. This component unit is included in the County's reporting entity <br /> because of its financial relationship with the County. <br /> The County provides a full range of municipal services. These include police and fire protection; <br /> emergency medical care;public prosecutor; culture and recreation; sanitation; social services; <br /> water;planning and zoning; construction and maintenance of highways, streets and <br /> infrastructure;Teal property assessment and tax collection; and general administrative services. <br /> However,the County does not provide such other traditional services as public education, <br /> hospitals and courts. These services are provided by the State government. <br /> The County consists of the island of Hawaii, 4,028 square miles in size. it is twice as large as <br /> the combined area of all the other inhabited islands in the Hawaiian Archipelago. Since there is <br /> no other local or municipal government within the County,there are no overlapping taxes and no <br /> overlapping debt. The County has an elected mayor and a nine-member council. <br /> Economic Condition and Outlook <br /> The island of Hawaii, commonly known as the Big Island,-is located 214 miles from Honolulu, <br /> the state capital; 2,200 miles from the west coast of the continental United States; and 4,000 <br /> miles from Japan. The city of Hilo on the east side of the island serves as the county seat as well <br /> as the transportation and financial center for the Big Island. Hilo's infrastructure includes Hilo <br /> Harbor, a deep-water port,and Hilo International Airport,which is capable of handling fully- <br /> loaded wide-bodied aircraft. Kailua-Kona and South Kohala, major tourist destination areas on <br /> the west side of the Big Island, are served by flights from the United States mainland,Japan and <br /> Canada through the Kona International Airport. Scheduled freight services are available <br /> between the islands by air and sea transport. Communities on the island are linked by a network <br /> of State and County maintained streets and highways. <br /> The Big Island is the most diversified of the neighbor island economics. As a result it is buffered <br /> to some extent when any one industry lags. However,it seemed that 2009 proved to be a <br /> challenge for most of the major sectors of the island's economy. Ongoing construction projects <br /> of the County, State and the University served to mitigate some of the decline in the construction <br /> industry. <br /> The County's labor force numbered 86,325 at June 2009. The troubled economic situation <br /> facing the County is evident in the increasing unemployment rate,which doubled from the end of <br /> Fiscal Year 2008 (4.5%)to the end of Fiscal Year 2009 (9.9%). As in previous sluggish <br /> economic periods,the sectors of tourism and construction suffered the primary job losses. <br /> Tourism—Despite substantial decreases in the recent year,tourism remains the major industry <br /> on the island. In addition to the mild climate and natural beauty it shares with other areas in the <br /> state,the County features the Hawaii Volcanoes National Park. A popular attraction,the park is <br /> the most visited site in the state, handling over 2 million visitors annually,which became even <br /> more popular with the increased activity of Kilauea Volcano. Total visitors to Hawaii decreased <br /> by almost 19%from 1,517,455 arrivals in Fiscal Year 2008 to 1,229,268 arrivals in Fiscal Year <br /> 2009. <br /> -2 - <br />