I wouldn't disband mercs or sell buildings. You don't get much cash for buildings anyway. If you want to get rid of mercs, make an army out of them and attack! Even if you lose, you should be able to do some pretty serious damage to the enemy while lowering your own costs.
You can always take those mercs, along with any outdated troops still on your roster, and make them the first line of units for a battle in hilly country. Put out 13 of those kind of units as well as your general, one spear, and one unit of bows. Set up those three units on a hill near the edge, and let the other 13 charge straight up the mountain into the enemy. Try to engage as many enemy as possible (no double teaming or flanking). Your "throwaway units will rout soon enough, and the enemy units will then tire out while chasing them all over them map, while "eliminating" some of your overhead for you. As your units rout off, you bring in your "keeper" units from the reserve and line them up on the hill with your general, spears and archers. The enemy units that have been chasing your throwaways will probably now attack your fresh units who are sitting on a hill in a nice defensive formation. After you destroy them, you are free to march your army across the map and mop up the scattered enemies.
You should kill a boatload of enemy units this way while you only lose units that you didn't really want anyway.
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