I have an Electra Townie with handlebars offset 2 1/8" forward of stem tube. Is there a replacement quill stem available that would line up handlebars with stem tube? Center of handlebars needs to be about 5" above top of stem tube.
Sounds like you have a ~60mm stem Quill stems are available in lengths from 20mm up to over a hundred mm.
Your other option is to rotate the handlebars so they get a bit closer, or possibly pull your saddle further forward on its rails. These might be worth trying anyway - they're free fixes and you can always revert.
If you want, you could replace your quill stem with a quill/threadless adapter and then fit a modern stem. There are many more threadless stems available nowdays, including adjustable ones which might suit you.