Tex. Local Government Code § 174.185

In making an award under this subchapter, the arbitration board may consider only the following:

(1) the history of collective bargaining agreements and negotiations between the parties;

(2) compensation and conditions of employment that prevail in comparable public sector employment in other municipalities;

(3) the rate of increase or decrease in the cost of living for the municipality's metropolitan area as determined by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), adjusted as necessary to account for housing and tax costs in the metropolitan area and other relevant local factors;

(4) any of the following conditions of employment:

(A) hazards of employment;

(B) physical qualifications;

(C) educational qualifications;

(D) mental qualifications;

(E) job training;

(F) skills;

(G) employee morale; and

(H) any other factors with respect to a condition of employment the arbitration board determines to be relevant to the issues raised by the parties; and

(5) revenues available to and contractual obligations of the municipality and the impact of any arbitration ruling on the taxpayers of the municipality.