Niagara Falls council members approved a $50,000 annual pay jump for the next city administrator, but not before questioning the involvement of a community foundation that is covering most of the increase.

The new $110,000 salary will be for Atlanta’s Public Works Deputy Commissioner Donna D. Owens, who was hired last week by Dyster to replace Interim City Administrator Bill Bradberry. Owens was hired as part of a national search funded by the “Building a Better Niagara Falls Fund” established by private donors through the Community Foundation for Greater Buffalo.

That fund also will pick up $35,000 in each of the next four years to pay Owens’ additional salary. After that, it will be up to the city to determine if the salary will remain at that level, Dyster said.

While councilmembers approve of Owens’ hiring, they’ve received calls over the past week from residents concerned about the salary increase. Bradberry was being paid $60,000 annually.

However, Dyster pointed out all of the increase will be covered by the fund and $15,000 that was placed in a contingency account in the 2008 budget to use at the mayor’s discretion.

“The amount taxpayers are paying is the same in the budget,” Dyster said. “(The salary increase) allowed us to be competitive in the national market.”

Owens, 51, has also served as street and alley cleaning officer in Washington, D.C., and a solid waste analyst in Baltimore’s Department of Public Works. She is expected to begin work July 1 and is in the process of finding a home in Niagara Falls. The hiring was the first of five city positions that will be filled through the national search that started in January and is being funded through the Building a Better Niagara Falls fund.

At Monday’s meeting, Councilman Chris Robins asked Dyster how the fund was set up and the source of the money. The mayor answered the funding is coming from numerous individuals wanting to better Niagara Falls, but said they’d prefer to remain private donors. At the foundation’s request, Dyster also declined to say how much the fund would contribute to the city over the four years of his administration.

Robins also had concerns about the remaining four open positions and what the salary levels will be in those jobs. Again, Dyster said the increases would be covered by the fund and contingency account, but Robins asked if a member of the council could serve as liaison in the process to oversee the salary negotiations.

“In reality, the council must approve the pricing of these next jobs,” he told the mayor. “We would like to give you a ball park figure.”

Dyster still is looking to hire a new corporation counsel, city engineer and an economic development director and director of tourism, which are two entirely new positions not funded in the current budget. The mayor told the council he’s trying to finish up with the appointments soon and will keep them updated on the salary negotiations.

Also at Monday’s meeting:

• Dyster announced there are two new sites being considered to place a temporary mobile visitors center downtown while the Niagara Tourism and Convention Corp.’s new $2.15 million center is constructed at 10 Rainbow Blvd. this summer.

NTCC officials had hoped to locate the temporary spot rent-free on a portion of a city parking lot at the corner of First Street and Rainbow Boulevard. However, Council Chairman Samuel Fruscione opposed that move, saying it would cost the city lost revenue by eliminating available parking spaces and have a negative effect on current parking contracts with nearby businesses.

Fruscione sponsored a motion to deny the move and recommend NTCC to find an alternative spot downtown. The motion passed unanimously.

Dyster said two owners of nearby sites contacted him over the weekend and offered their property for NTCC’s use at no charge.

NTCC CEO and President John Percy attended Monday’s meeting and said he would work with the change in plans.

“We will be exploring all of the possibilities,” he said.

• After tabling it last month, councilmembers approved a request to amend the city’s charter and allow North Tonawanda metal manufacturing company Ascension Industries to be recognized within a state Empire Zone, opening it up to tax credits.

Ascension, which employs more than 120 skilled workers from Niagara and Erie counties, is expanding its manufacturing facility in North Tonawanda and anticipates creating at least 50 full-time jobs over the next five years. Niagara Falls is the only site in the county currently designated for Empire Zone sites, but according to state law can bestow designation to another municipality if recognized as a “regionally significant project.”

Businesses located in an Empire Zone area are eligible for numerous financial benefits from the state, including wage credits of up to $1,500 per employee and a refund of a portion of state sales tax.

The Empire Zone allocation will not affect the current amount of designated land in Niagara Falls and Ascension officials have promised to make hiring Falls residents a priority in exchange for the approval.