For a distant building, depth of field is probably not the main problem. At that range, your camera was likely focused near infinity, so stopping down a little won’t dramatically improve overall sharpness.

The more likely issue is camera shake. On a small camera like the G16, 1/60 sec at night can still be marginal if your handholding technique isn’t steady. The softness in the sample is consistent with slight motion blur, and low-quality JPEG compression can also make fine detail look worse.

What to do:

• Hold the camera as steadily as possible and practice handholding technique.
• If possible, brace yourself or the camera against something solid.
• Take several frames; small differences in shake can make one noticeably sharper.
• If light allows, use a faster shutter speed.
• If handholding isn’t enough, use support such as a tripod or stable surface.

So yes, a smaller aperture and longer shutter would usually hurt handheld sharpness unless the camera is stabilized. For this kind of distant night scene, steadier shooting technique and/or more support matter more than increasing depth of field.