Its probably from your packing gland. While its sitting in the water look at the area just behind your thrust bearing. You have 2 bolts connected to a big sort of washer press. This is keeping the gland snug and you might need to give it a light turn but no more than 1/8-1/4 turn at a time each side evenly. Its normal to have some water but a steady drip at float could mean cavitation as well. I just had my pump rebuilt and added a zerk to keep that area lubed. You need to get the clean out taken care of cause it will lead to cavitation as well....like having a hole in your straw while drinking soda.