Ammonia in tap water is usually in the form of chloramine. This is a chlorine and an ammonia joined together and the ammonia half shows up in the test. Many water providers use chloramine rather than chlorine to disinfect drinking water.
The pH reading is important in this case. Ammonia exists in two forms in water - ammonia and ammonium - and our test kits measure them both combined. The amount in each form depends on temperature and pH. Most of us keep our tanks at roughly 25 deg C/77 deg F so that remains constant. What does vary from tank to tank is the pH. At low pH virtually all the ammonia is in the less toxic ammonia form, while at high pH a lot is in the toxic ammonia form. The toxic form is usually referred to as "free ammonia".
The pH here is 6.0, or possibly below that as 6.0 is the lowest most testers can read. At pH 6.0 and 77 deg F, a tester reading of 1.0 ppm ammonia contains 0.0006 ppm of free ammonia (the toxic form).
Fish are OK in 0.05 ppm free ammonia for a couple of days and up to 0.02 ppm for a few days. The free ammonia level here is 0.0006 ppm. This is so low that it can be ignored.
@Ridgerunner You can use this calculator to keep an eye on your free ammonia level
Aquarium calculator; Estimate the free (un-ionized) ammonia (NH3) concentration, given the total ammonia concentration.
www.hamzasreef.com
Set salinity to zero and enter the other data in the left hand box from your test readings and thermometer. The number you need is in the NH3 concentration box in the right hand box.
Provided the free ammonia level remains as low as it is now, you don't need to do anything.