Yes and no, and maybe.
It could be a sign of a leak in the lil round sleeve that seals the water tube to the pump or engine. My motor does this and I know that this is my issue due to the construction of my motor, but I fugure as long as I have good cooling and a strong tell tale it doesnt bother me. I also have the luxury of a temp sending unit which you probably do not have so take that into account.
Some motors will do this as they pass cooling water down the log past that hole.
If your just putting this motor back into service youre going to want to replace the impeller and youll be digging around near those sleeves anyway and can easily replace them or at least the one on the lower end near the pump.
