The council said this week it was committed to supporting the festival, despite the increasing pressure on public spending. Costs this year approached £150,000 with the authority providing £128,000. The rest of the bill was met by sponsorship.
Council leader Paul Scriven said the financial climate meant that every penny of council spending had to be scrutinised, but Tramlines had already proved itself not only as a major music event, but also in terms of boosting local businesses and generating national publicity.
Many shops, bars, cafes and other businesses in the city centre reported bumper trade as music fans more than doubled the numbers of visitors compared with the previous weekend, the atmosphere bolstered by the continental market.
More than 250 acts played across 50-plus venues and three outdoor stages at the expanded second festival. Queues for Devonshire Green and its main stage began forming at 5.15am on Saturday and 7.15am on Sunday.
By the time fans were allowed on to the green on Saturday, a massive queue had formed along Devonshire Street and Trafalgar Street.
A system of one in, one out was operated once the green was full, and at one point on Saturday afternoon the message went out to steer clear of the main stage.
Most fans were local, but there were contingents from Manchester and Leeds and a sprinkling from places as far away as London and Edinburgh. No incidents were reported.

Festival organiser James O'Hara said: "We said it would be bigger and better this year and I hope everyone agrees with me when I say that it definitely was."
Coun Scriven said Tramlines showed Sheffield at its best. "It was the right event in the right city at the right time. It was a heck of a festival and an incredible experience. The city centre was buzzing."
Describing the event as an "urban Glastonbury", he praised the local music industry for its hard organisational work and ingenuity in securing sponsorship.
The council cost had worked out at 24p per resident.
"It's hard to believe that this is only the festival's second year. As a council we're extremely proud to be involved in the event. Not only bringing music from all genres to all ages but also in boosting the city's economy – especially in the current climate.
"Tramlines is something we are definitely committed to as a council and something that is here to stay."


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