Hi Karrie,
I just tested the tap water It dose have a ammonia reading of about .25 ppm.
If you have ammonia in your tap water this indicates that your water supplier is using chloromine.
An extract from Jennifer Macke's article 'Water Quality for Aquatic Caudates':
"About half of the waterworks in the U.S. now use chloramine, not chlorine. Letting your tap water sit out overnight will NOT get rid of chloramine, you must use a treatment product. After treating, it is still a good idea to let the water sit overnight also, to allow dissolved gasses to dissipate, and for the temperature to equilibrate to match your tank. How do you know for sure if your waterworks is using chloramine? Do an ammonia test on your tapwater. If you have ammonia there, it means your waterworks uses chloramine. Even if your waterworks doesn’t use chloramine today, it may switch over (and they might not tell you when they do!). Get used to the idea of chloramine, and use an appropriate product to get rid of it.
You may be surprised to learn that aging water overnight does
not entirely get rid of chlorine either. Depending on the temperature and the size/shape of the container, it can take over a week for chlorine to dissipate from tap water. Again, even if you have just chlorine, you probably need to use an appropriate water conditioner to treat the water before use."
A link to the article for futher information:
http://www.caudata.org/cc/articles/waterquality.shtml
Even after using a dechlorinator to neutralize the chlorine/chloromine, you may find that the test kit will still detect the presence of Ammonia in your tap water. When this water is poured into the tank, the bacteria will break this trace of ammonia down just like any other waste.
You probably already know this, but I would check the water conditioner you are using to ensure it does get rid of chloromines as well as chlorine - it should be clearly marked on the label.