Adrienne Joly was hired Jan. 22 as New Albany's deputy community development director.
She had held the position on an interim basis since Kathryn Meyer resigned last November.
Joly, a former intern for the city, was hired in April 2012 when the city created the position of project manager to act as a liaison between city departments and developers.
She will continue to do both jobs until the city posts the project manager's position, city spokesman Scott McAfee said.
As project manager, Joly was earning $59,772.54 per year in salary and the city was paying $23,028.19 in benefits for her.
Her salary will increase to $75,144.99, said McAfee.
Joly has a bachelor's degree in political science from the University of Nevada, Las Vegas, and a master's degree in city and regional planning from the Ohio State University.