Mason & Kitsap County SD 403 (North Mason), WA (A1)'s credit profile reflects a satisfactory reserve and cash position despite the loss of revenue from the district’s enrichment levy supported by management’s prudent fiscal management and proactive cost containment strategies. While fiscal 2021 enrollment has declined because of the coronavirus pandemic, enrollment will likely recover and grow in line with historical trends. The district also benefits from a stable and diverse local economy supporting solid resident incomes and full value per capita stemming from rising home values. As is common among peers in the state, the rating also incorporates the district's use of financial reporting that does not disclose other post-employment benefit liabilities, capital asset values, or depreciation, because the district follows the 'Regulatory Basis of Accounting' as directed by the Office of Superintendent of Public Instruction (OSPI) and the practice is allowed by Washington state law. Additionally, overall leverage and fixed cost ratios are moderate and will likely remain manageable.