Originally Posted by
icemilkcoffee
<seat high enough for proper pedalling> true for all riders. But not true for beginners, which the OP obviously is. For a beginner, the seat should be low enough for you to put both feet , if not flat on the ground, at least comfortably on the ground (ie. not tip-toeing). When the OP is comfortable with riding a bike, then she can raise the seat gradually until she gets to the optimal position.
Fair point. The other issue is that OP said the saddle is as low as it can go but is still too high to put feet on the ground, which confirms my point about the 16" frame being too big for a person 5'1"