That 1990 motor is a tad newer than what I'm used to, but let me say this: The mid-section fills up with water approximately to the level of the exhaust relief holes, with the hot inner exhaust tube running down through the center of it. So, if nothing else, it has the pressure of the weight of about a foot and half or so column of water behind the "squirt". Also, I am not intimately familiar with the inner exhaust tube on that one, but is would be a safe guess that it has an inter-connection with the exhaust relief and water discharge, so there might be some exhaust back pressure on that column of water. If that is a good guess, that would increase the "squirt" range.
Nevertheless, I stand behind what I said, that hole drains the mid-section. It has been there since about 1968 models and we've all seen it. And it is normal.