CAFR 2012 Final with Opinion (2)

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County's slowly rebounding industry, is the fact that there was a 4% increase in the number of visitors to the island from the prior fiscal year. More importantly, spending growth for this sector has been even stronger than the actual arrivals. Construction--The construction industry continues to serve as the lagging sector of the economy but there are recent signs that this may change soon. Although, construction jobs remain below that of peak times, private building permits which serve as a better indicator of the future shows encouraging results. Scientific Research and Development—Due largely to its unique geographic characteristics which has attracted scientists in fields of astronomy, meteorology, volcanology, and agriculturelaquaculture,the County has benefited economically by the significant investments made in scientific research. The total astronomy related capital investment on Mauna Kea exceeds $600 million and combined annual budgets are about $75 million. Astronomy continues to be a major factor in the success of the County's economy with an estimated nearly 500 new jobs opening up through 2023 to meet the needs of the current observatories and the creation of new jobs with the development of the Thirty Meter Telescope (TMT) by the TMT Observatory Corporation. The Hawaiian Volcano Observatory in Hawaii Volcanoes National Park and the Natural Energy Laboratory of Hawaii Authority at Keahole, Kona are also major contributors to international research and the local economy. Major Initiatives For the Year During the year, the County focused on construction projects relating to housing, sanitation and public safety, and other issues affecting the quality of life in the County. Public Safety—Construction continued on the Makalei Fire Station reaching a total cost of approximately $6.1 million at the end of the year and is expected to be placed into service in the next fiscal year. The Fire Department installed two new lifeguard towers valued at $87,000 for Hapuna Beach Park and Punaluu Beach Park and purchased a new 2,000 gallon Fire Apparatus Tanker for Kau for $221,000 that was funded by a Community Development Block Grant. Public Works—The Ane Keohokalole Highway in Kona was opened to the public in June 2012 at a cost to the County of$28.9 million. The 2.9 mile highway serves as the largest expenditure of American Recovery &Reinvestment Act money for transportation infrastructure in the State and is also the first major road to be built by the County in Kona since statehood. Environmental Management—The processing capacity of the Honokaa Wastewater Treatment Plant was upgraded from 56,400 to 200,000 gallons per day to service the schools and business community within the Honokaa Town area at a cost of approximately $5.0 million. - 3 -