I don't know if it is supposed to be there, but mine also had some. I just cleaned it with a electronics cleaner spray from the local auto shop, good as new.
Your pacing seems adequate to get the whole engine redone quickly, so like Calj, I too, will suggest you at least inspect it and reuse what you can and replace the wearbles. This should give you a good rider for a while, but if you're planning to tear it down again to rebuild, say this winter, then stick with just the top end.