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The town will have a sharp reduction in the fines that resulted from problems uncovered during the state’s investigation into Avon’s former water superintendent, said Town Administrator Michael McCue. The state initially fined Avon $48,800 for safety infractions at the water plant; that amount has been reduced to $2,000, McCue said. The difference, as well as more than $200,000 approved by Town Meeting, will be used to buy equipment and make other improvements in the municipal water system over the next three years, McCue said in an e-mail. “Our administrative and legal team worked hard to reach an equitable settlement,” selectmen chairman Frank Hegarty said in an e-mail, “and we look forward to moving forward.” Former water superintendent John Tetreault pleaded guilty in federal court in 2012 to falsifying water safety reports on four occasions in 2010 and was fined $15,000, placed on probation for a year, and ordered to apologize in advertisements in the Boston Globe and two utility trade periodicals.