I merged your posts together. Instead of posting back to back, just hit the edit button and add to your last post so there's not a lot of back to back post bumping.
My reason for asking about your pH is that ammonia toxicity is very pH dependent. That said, when dealing with a new/cycling tank it's best not to mess with the pH unless it is causing a direct issue.
The ammonia in the tap is concerning, it's not unheard of, as many water systems use chloramine, but you could contact the local water company to be sure. They should be able to give you a data sheet of everything that's in the water.
Because of the high ammonia content I would be hesitant to use it for PWCs. There are a few alternatives you can use, like bottled water, collected (clean) rainwater, or a reverse osmosis filtration system.
Once the tank is well established I would use the tap water for PWCs, knowing that it has a level of ammonia in it. It's less of an issue in a well established cycled tank though because the bacteria will process it quickly, and as long as the water changes are small in size (i.e. 25% or so) it shouldn't cause any ill effects to the stock.