So I'm interested in the Reid Cruisers. There's 3 options...the smallest option is geared towards 4'9" to 5'3" M is 5'2" to 5'7" and large is 5'7" to 6'"
S – 42cm with 26″ wheels, and M – 46cm and L – 52cm with 700C wheels

I'm thinking even though I'm on high end of small it would better suit me for ability to be flat foot, etc.

Is this correct?

I cruise around the neighborhoods and on bike paths.

My goal is under $400 with fenders and rear rack <40lbs.

Thanks.