A former Dawson City mayor accused of stealing from the town's coffers is now asking that his legal expenses be paid from the state's pocket.

Glen Everitt, along with his fellow councillors, was fired from his post as mayor of the debt-laden town in April 2004.

In 2007, after a two-year investigation by the RCMP's business crime unit, Everitt was charged with two counts of fraud, two counts of breaching the public's trust and two counts of theft over $5,000.

His case has been slow to come to court, and up until now, Everitt has acted in his own defence.

Monday was the first time he has appeared at the Whitehorse courthouse.

He was there yesterday and today applying for financial assistance from the Crown to cover the cost of having a lawyer at his preliminary hearing, where the Crown will introduce its evidence and the defence will have the opportunity to question Crown witnesses.

Everitt said he applied to legal aid for assistance but was rejected because his household income is greater than the legal aid system's maximum allowable.

He appealed the decision and was rejected again. According to the legal aid system's website, a household with two adults and four children must earn less than $3,000 a month to be eligible for a free lawyer.

Before Yukon Supreme Court Justice Leigh Gower could entertain arguments from Crown attorney Eric Marcoux and temporary defence lawyer Emily Hill, the court had to deal with the fact that Everitt still has not chosen to have his case heard by a territorial court judge, a Yukon Supreme Court judge, or by a judge and jury in Supreme Court.

Gower explained that if Everitt did not choose immediately, the court would decide for him.

Everitt objected, saying one of the reasons he needs a lawyer is to make just that decision.

"I don't know," he finally responded when the judge asked him to stand and make his choice.

"The record will reflect that you are deemed to be tried by a judge and jury," Gower said, adding that Everitt could appeal that decision at a later date.

The former mayor spent the rest of Monday's session on the witness stand, answering questions about his personal financial situation.

In his cross-examination, Marcoux peppered Everitt with questions about his monthly expenses, trying to prove the accused has sufficient income and resources to come up with the estimated $20,000 it would cost to hire a lawyer for his preliminary hearing.

Both sides agreed a preliminary hearing will take approximately three to five days.

"No, I have not considered cutting off the television to my family to start saving $100 a month," Everitt snapped when asked about that particular expense.

"You're the one asking the state to pay for your counsel," Marcoux said.

"And you're the one that brought me here," Everitt retorted.

When Marcoux asked what is more important, paying for his legal battle or paying for Christmas, Everitt said, "To be honest, it would be for my kids to have Christmas and birthdays."

Asked if he is willing to pay for some of his legal costs, Everitt said that would require getting another job and spending less time with his family, something he said he is not willing to do.

"I'll take your answer as being no," Marcoux said.

In her redirection, Hill asked her client, "Would you be willing to contribute $100 a month?"

"Yes."

"Would you be willing to contribute more, if a payment plan could be worked out?"

"If I could, yes," Everitt said.

Hill made her final arguments this morning. Without legal counsel, she said, Everitt would not be able "to make use of the witnesses provided" in a preliminary hearing, and therefore would not get a fair trial.

Marcoux stood by his assertion that Everitt must pay for his own defence.

Gower had not made a decision on the matter by press time early this afternoon.

Crown counsel had also asked the court for access to Everitt's income tax records, but Gower turned down the request.

"It seems to me to be contrary to the principles of the assumption of innocence," the judge said.

Part of Everitt's right to remain silent is his right to withhold his personal financial information, he added.

A publication ban was levelled against any evidence given in regards to Everitt's duties and remuneration as mayor.

Hill, a legal aid lawyer, is appearing on his behalf only on the application for financial assistance, Everitt said.