Re: wATER IMPELLER INSTALLED
You're running on a flusher, ?no? If so, most water will be discharged thru the prop. Out of the water, there's not enough backpressure to force a significant amount of spray out the exhaust relief holes at the upper rear of the mid-section.
Your telltale hose would exit thru the lower engine cowl at the Stbd rear side of the motor. It's likely to be clogged with debris and a common way to clear it out is to blow air back up into it. Otherwise you may have to undo the hose and attempt to clean/flush any debris out of it.
The water coming out the prop should be noticably warmer than what's going in, if it is you know it's flowing thru the motor and picking up heat. Feel the flat cover on the Port side of the motor (the exhaust manifold cover). If it's fairly cool when running, you've got plenty water flowing thru the motor. If it's hot, that's bad, shut 'er down!
But it sounds like things are OK except for the telltale.
HTH.........ed