DETROIT -- Former Highland Park Financial Manager Art Blackwell was bound over for trial Friday afternoon.

Blackwell has been charged with five counts, including misconduct in office and embezzlement for allegedly taking $264,000 in pay while he was Highland Park's emergency financial manager.

Blackwell said the original agreement, reached with Michigan Governor Jennifer Granholm, called for him to be paid $1 a year. Blackwell said he later reached a deal to earn $11,000 a month, but that the state did not pay him in a timely manner.

According to State Deputy Treasurer Val Washington, that's when Blackwell decided to pay himself, from the Highland Park accounts Blackwell managed.

"I said to him, 'What's this all about?', and he said 'I'm paying myself some money'. I'm paraphrasing it, this is not verbatim, but that's the gist of the conversation," Washington said Friday while testifying at Blackwell's preliminary examination in 32A District Court. "I said, 'How could you do that?', or something to that effect, and he kind of shrugged his shoulders, and I said we'll work it out."

Washington said the issued was not resolved and that during a later conversation Blackwell asked about repaying the money. "In fact, I was specifically asked, 'If I pay this does this all go away?' I said, no that does not happen."

Judge Roger L. La Rose ruled that Blackwell will be bound over for trial. After the hearing Blackwell's attorney said he welcomed the chance to explain what happen because, according to Blackwell, it's the state that owes him money.

"He's two months short," said Attorney Carl Marlinga, who is representing Blackwell. "He's $22,000 short. So he served 36 months and was supposed to get $11,000 a month and he ends up getting stiffed by the state for two months."

Blackwell's trial was set for January 15.

Blackwell, 56, of Detroit, is facing embezzlement charges in a case where he is accused of taking an illegal salary while working as the financial manager of Highland Park.

Blackwell was appointed by Granholm in April 2005 to bring the city out of financial trouble.

Blackwell wanted Granholm to be forced to testify about their agreement, but the judge ruled the governor does not have to take the stand.

Questions about Blackwell's pay were first brought to light by Highland Park School Board Member Robert Davis who filed a taxpayer civil lawsuit.

"At no point in time did his contract indicate he was to pay himself, or enrich himself from the treasury of the City of Highland Park as he did in the amount of $264,000," Davis said.