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EDC staff say $100,000 in grants generated roughly $890,000 in local investment
Summary
EDC staff presented a rough return-on-investment (ROI) analysis showing about eight dollars of private investment for every dollar the committee paid in grants; the advisory finance committee voiced support and members requested an annual ROI report for accountability.
EDC staff presented a rough analysis on the Economic Development Committee’s grant program, saying roughly $100,000 in grants over several years corresponded with about $890,000 of private investment and job creation in Westborough.
The presentation, given by Laura (Community Development staff), said she reviewed two to three years of grant awards and applicants’ self-reported investment and job projections, converted part-time and full-time positions to annual equivalents, and produced an index figure she described as “about 8.5” — meaning about eight times the grant amount in private investment. She cautioned the calculation was imperfect because the underlying application data were incomplete.
The advisory finance committee reviewed the calculations and "voted to support the grant program," Fred (advisory finance committee member) told the EDC, summarizing the result as roughly "$8 of business investment for every $1 of grant support." Fred and others noted the analysis should be treated as an indexed estimate rather than a precise econometric study.
EDC members asked for that analysis to be repeated on an annual basis and for better follow-up from award recipients. Karen urged an annual report that would capture both quantified investment and less-tangible benefits such as local business relationships and community goodwill.
Committee members also discussed the program’s funding source. Fred explained the grants are paid from a billboard agreement that pays the town $10,000 per electronic billboard location; with six spaces the agreement produces about $60,000 annually for the grant pool. He emphasized this revenue is not drawn from taxation or free cash.
The committee did not vote to change the grant program during the meeting but expressed broad support for continuing the program with improved data collection and recommended the EDC publish an annual ROI summary after each grant round.
The next steps are for staff to refine the methodology, expand follow-up with prior recipients to verify outcomes, and return to the committee with an annualized ROI report.
