That is cyano. It sounds like the use of tap water is most likely your problem. If I were you, I would go to RO/DI water and also treat me tank twice with chemi clean. If the cyano was just limited to your sump, then the previous person who said to harvist it isnt a bad idea until you get your nutrients under control. From your picture though, it is throughout your tank and is starting to smoother your rocks. Cyano is great at smoothering and killing anything. This is why you need to use chemi clean. the first round should kill off most of it. I would do a second round after water changes to whip out any left overs or to at least keep it at bay for the next 6 months, at least that has been my experience. i cant ever compeltly kill it in my tank, but the two rounds of chemi clean seems get rid of it to the naked eye for at least 6 months until it starts to slowely show itself in my sump again.