Ten year old magna "outreach". that name is worth the, um, $59.99 price of entry. I'm willing to bet that the quill stem has never seen grease, and even with dedicated basement/garaage duty, it's frozen in the headtube.
So, yeah, try to loosen the hex bolt and yank up on the whole mess, to the minimum insertion point or the limits of the cables. If it doesn't move, try some penetrating oil. If it still doesn't move, tighten the bolt, get used to the butt-up riding position, and get a swanky new ride. I hear Magna is now making a bike called the "Evangelist". =P