I worked as a chemist/microbiologist with a water supplier. We tested for ammonia and nitrate daily using the salicylate method on a spectrophotometer. This method is highly sensitive, and my guess is, that is what your water dept uses. These are professional water analysts. As an analyst, if nitrate or any other parameter were out of compliance, we would shut down production, and order a "don't drink" press release.
We daily tested known and unknown samples using DI and spiked water, our glasswear was acid washed and tested for contamination. Most aquarists don't have the equipment to do this kind of detailed testing, and often get erroneous results because of contamination, outdated reagents or just plain sloppy technique. In our lab, we would run multiple aliquots for each sample.
I can't tell you how many aquarists would call with results that didn't match ours.
I'm not trying to call out your ability, but..."each" ammonia/nitrate test we did had a cost of at least $100, and was analyzed on spectrometers that cost more than a car.
If the water quality report states a number, it is what it is, and you need to investigate somewhere else.