Water enters the engine at lake temp to cool the running engine. While it is doing it's job, it is absorbing heat from the motor and returning to the lake. The water will be hot if it is working correctly.
Thermostat opens at 140 degrees. But some of the water never sees the 'stat, so the discharged water will be less than 140. You should be able to hold your hand in it without much discomfort.
